The Welsh Government introduced amendments to the Occupation Contract template documents, prompting a need for landlords in Wales to take necessary actions. NRLA’s Head of Policy, James Wood, has shed light on the implications for landlords in Wales following this amendment.
The adjustment, implemented on Wednesday (December 6), specifically targeted the explanatory information section within the contract. Notably, the revised wording now explicitly allows landlords to issue an occupation contract before the tenant’s actual occupation of the premises.
This clarification was pivotal as the original document lacked explicitness on this matter, leading to debates regarding the validity and binding nature of a written statement before a tenant’s physical occupation of the property.
The recent amendment unequivocally affirms that landlords have the prerogative to issue contracts ahead of the agreed-upon start date, putting to rest any ambiguity that previously existed.
While the NRLA had maintained the stance that pre-occupancy issuance was permissible, the official clarification by the government serves to affirm this standpoint, marking it as a welcome move for clarification within the industry.
In addition to this clarification, the government also took the opportunity to rectify several typographical errors present in its model occupation contract.
The context for these occupation contracts in Wales stems from the Renting Homes (Wales) Act, which replaced traditional tenancy agreements and mandates the inclusion of specific mandatory information or terms within the contracts.
Failure to incorporate these essential elements could potentially render landlords liable to penalties for furnishing incomplete or erroneous written statements.
Landlords now face the task of updating their existing contract templates in line with the revised information requirements. Any new contracts must include these updated provisions to avoid incompleteness or inaccuracies.
However, for landlords with ongoing tenancies, immediate action is not mandatory until a new contract is negotiated. As the recent amendment pertains solely to the explanatory information and not the core or supplementary terms, issuing a statement of variation to existing contract holders for this specific change is not obligatory.
Looking ahead, forthcoming changes linked to the Renters (Reform) Bill, primarily impacting England but influencing occupation contracts in Wales as well, will introduce new fundamental terms. These additions encompass regulations related to family discrimination and tenants receiving benefits.
Upon the implementation of these legal modifications, all landlords in Wales will be required to issue a statement of variation and update their contracts accordingly. NRLA members will receive timely notifications and necessary resources to ensure compliance with these impending changes.